mortgage

Get The Best Mortgage Loan Successfully Following 3 Steps

If you are finding it hard to get the best mortgage, here are the initial three steps to set yourself up for getting the best mortgage loan.

  1. Pullout Your Credit Reports: Before accessing a mortgage application, a loan seeker should check their credit reports. You need to ensure that there is no mistake in your credit report as it can reduce your credit score unnecessarily. Credit history plays a crucial role in getting a good deal on a mortgage loan. You can pull your credit report for free once a year from the CIBIL credit bureau. 
  1. Improve Your Credit Score: An individual should improve their credit score before applying for a loan, as mortgage loan interest rates in India depend on the creditworthiness of the borrower greatly. Generally, a lender prefers a credit score of 700 to approve a loan. However, it is a mortgage loan; they can also approve your loan at a lower score. You should pay your credit card bills and previous loan EMIs on time to improve your credit score. Also, if you find a mistake in your credit report, submit a request to improve it as soon as possible.
  1. Calculate how much EMI you can afford: Before you start filling out your loan application, check how much EMI you can afford to pay. Use the calculator provided by the lender to calculate eligibility and EMIs o a loan beforehand.

The lender may ask for your ongoing loans or existing debts. You can compare different property mortgage loan offers with different lenders. Most individuals prefer trusted NBFCs to get a loan at an affordable rate.

Must Read: 7 Steps To Get Successful Approval on mortgage loan

Mortgage Loans: How to Get the Best Loan Against Land?

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A mortgage is a secured loan you get by using your property as collateral. If you want to buy a new property, the collateral is the property itself. There are various types of mortgages, such as a simple mortgage, usufructuary mortgage, mortgage by conditional sale, and mortgage by title deed deposit.

You’re all set to apply for a mortgage loan. But before it consider these factors to get the best loan against land. 

Improve Your Credit Score

The credit score is a crucial factor in the approval process of a mortgage loan. A healthy credit score will increase your chances of getting a good mortgage with low-interest rates. Making your debt payments on time and avoiding major purchases on credit are some ways to improve your credit score.

Determine Your Budget

Next, calculate your budget and decide on a loan amount accordingly. The 28/36 rule works well here. Ideally, your mortgage payments and other front-end debt obligations shouldn’t exceed 28% of your monthly income. The back-end debt obligations shouldn’t exceed 36%. 

Shop for the Best Mortgage Loan Interest Rates

Once you know the loan amount you need, look for the best mortgage loan interest rates. Most Indian lenders charge an 8.15%-11.80% interest rate. Borrowers can opt for fixed or variable interest rates. Fixed interest rates remain constant throughout the mortgage period, while variable rates fluctuate as per market conditions.

Get Pre-Approved

The final step is to get pre-approved, as this will speed up the mortgage process. Get your paperwork together, including income proof, asset proof, list of liabilities, and other additional paperwork. 

Must Read: Apply for Mortgage Loans in a Few Simple Steps